IIQE Paper 1 Principles of Insurance question: Export cargo waiting at a container depot

Answer: A. pays only the HK$100,000 above the marine payment

Answer: pays only the HK$100,000 above the marine payment. The Marine Clause in the standard fire policy provides that the fire policy will not share the loss with a marine policy, except for the part of the loss above the marine compensation.Why not the others:• pays nothing, as the marine policy is more specific: the Marine Clause still lets the fire policy pay the part above the marine compensation.• pays HK$500,000 and recovers from the marine insurer: the fire policy does not pay the loss first and recover.• shares the HK$500,000 loss rateably with the marine policy: the Marine Clause stops the fire policy sharing the loss with the marine policy.Watch out: Treating the Marine Clause as a full non-contribution clause.Rule: Marine Clause (partial contribution condition): the fire policy pays only the excess over the marine compensation.Source: IA P1 Study Notes, 2024 Edition (8th ed., Nov 2024; for exams from 17 Feb 2025), 3.5.5(c), p. 3/17